Korres SA Natural Products, a leading Greek natural cosmetics producer, is giving up a majority share to a Morgan Stanley-backed private equity firm and the Chinese cosmetics distributor Profex. According to pharmacist George Korrres, founder and CEO of Korres SA Natural Products since 1996, under the deal Korres family will hold on to a 30 percent stake in the firm as well as the management with the two new investors holding 70 percent. The deal has to be approved by Greece’s four systemic banks who had given Korres a corporate loan of 25 million euros.
The transaction will be made through Cyprus-based company Nissos Holdings Ltd., which is currently wholly owned by Giorgos Korres. North Haven Private Equity Asia (NHPEA), a private equity fund managed by US-based Morgan Stanley will acquire 56 percent of Nissos and Profex another 14 percent. NHPEA and Profex will subscribe for cash, 48.3m euro in total. Then Nissos will buy out 52.3 percent of the Korres shares (approximately 6.6% of the share capital of KORRES held by Giorgos Korres and approximately 45.7% held by other shareholders), at a price of 5.08 per share.When another 30 percent from Giorgos Korres is added, Nissos will hold more than 82% of Korres, allowing it to force out other shareholders. It is envisaged that following completion of the MTO, a capital increase of up to €10,000,000 will be implemented by the shareholders of Nissos in order to fund the future expansion of the Korres group.
“2018 will be a landmark year for the Group as we move forward with an excellent alliance that will offer us the possibility of further growth; a strategic agreement, which is the result of our group’s constant effort over the last 21 years.” Greek national news agency AMNA quoted Korres as saying during a press conference. “The aim of our agreement with Morgan Stanley and Profex is to expand in international markets and to establish the brand globally, beyond Europe, North and Latin America, where we have already established strong presence. The values and philosophy of Korres remain the same, we continue focusing on Greek herbs, on a network of partnership with growers, on product innovation, on scientific research.” he added.
Profex and Korres also agreed to enter into an exclusive license and supply agreement for Profex to distribute Korres products not only in mainland China, but also in Hong Kong and Macau, according to the company's announcement. Korres said that its plant in Oinofyta, north of Athens, will concentrate on making enough for China’s growing appetite for its goods.
Korres Athens 1996
Κorres was founded in 1996 in Athens by pharmacist Georgios Korres from the island of Naxos. It produces beauty products for women and men, based on natural and / or certified organic ingredients (and partly on homeopathy) and it was a pioneer in Greecein this sector. Korres distributes its products in 30 countries. It counts 18 stores in the cities of Athens, Paris, Madrid, Helsinki, Dubai, St.Petersburg, Prague, Barcelona and Singapore amongst others. In the Greek market its products are distributed through >6,500 Pharmacies.
Shanghai-based Profex is owned by Greek entrepreneur Pavlos Kontomichalos and is a pioneering specialty company in China with a leadership position in dermatology and skincare. Profex has 3 complementary businesses: Pharmaceuticals, Consumer Health and Medical Aesthetics, and employs over 500 dedicated team members. Profex was founded in 2001.
NHREA Founded in 1985
North Haven Private Equity Asia IV is a private equity fund managed by Morgan Stanley Private Equity. Morgan Stanley Private Equity is a private equity general partner firm based in New York with offices in China, Hong Kong, India, Japan, South Korea, United Kingdom and United States. It was founded in 1985